Strategy Analytics: OTT Subscription Based Video On-Demand Services are at Consumers' 'Top-of-Mind' for Video Content

Will consumers "cut-the-cord" with mainstream TV?

Nov 06, 2013, 08:00 ET from Strategy Analytics

BOSTON, Nov. 6, 2013 /PRNewswire/ -- With access to OTT subscription based video on-demand (SVOD) services more easily and readily available due to the integration of smart TVs as the main TV in many consumers' homes, OTT SVOD services are gaining in popularity. Offering a cheaper media source with a competitive breadth of video content, subscriptions are increasing as these services become a major threat to TV providers. A new report from The Strategy Analytics' Digital Home Observatory (DHO), "OTT Subscription based Video-on-Demand becomes a Threat to TV Service Providers," examines consumer behaviors and attitudes towards, and use, of on-demand TV and, of early adopters of connected TV.

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While OTT SVOD services provide exclusive content, such as 'House of Cards' and 'Arrested Development' (as of 2013) on Netflix consumers have become drawn to on-demand video in a similar way to regularly broadcast TV; tuning in to watch specific TV shows and video. Coupled with the additional benefits of being less expensive and more readily available; providing a more appealing, familiar and easy to use user interface and an easier method to discover video content of interest, OTT SVOD services are becoming a threat to TV providers. Many consumers are looking to become "cord-cutters" for good.

"When participants were asked where they are sourcing video content from, the majority did not even hesitate to mention an OTT SVOD as their main source," commented Taryn Tulay, report author and Senior Analyst in the Strategy Analytics Digital Home Observatory (DHO). "Consumers find that the variety and quality of OTT SVOD content is meeting their media needs, without any restrictions of what device they are able to view the video content on and at a cheaper price."

"Initially, OTT SVOD content was used as a last resort when nothing else is on, or for 'catch-up TV'," added Kevin Nolan, VP of Strategy Analytics' User Experience Innovation Practice (UXIP). "However, the benefits of OTT SVOD are outweighing those of broadcasted TV, with many consumers finding broadcasted TV less valuable to them. It is imperative for TV providers to start looking at how they can incorporate such services that are 'top-of-mind' for the majority of consumers."   

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. 

About Digital Home Observatory

The Digital Home Observatory forms part of the User Experience Innovation Practice (UXIP) at Strategy Analytics. Focusing on user behaviors, motivations and interests within automotive, wireless devices, connected home and digital media research areas, UXIP helps clients meet consumer needs, develop usable solutions and deliver compelling user experiences. Extensive expertise and highly experienced in large-scale survey work, in-depth interviews, focus groups and observational sessions, UXIP's research methodology allows strategic user-centric analysis on the potential for new technologies that would otherwise be unavailable. Providing actionable insight, go-to-market strategies and business recommendations, UXIP is a leading supplier of consumer knowledge to the technology industry. Click here for more information.

Press Contacts

US Contact: Taryn Tulay, +1 617 614 0700,

European Contact: Kevin Nolan, +44(0) 1908 423 609,

SOURCE Strategy Analytics